Rapaport Press Release
One Carat Diamond Prices Slump 13.7% Year on Year
RAPAPORT... PRESS RELEASE, July 3, 2012, New York: Certified polished diamond prices fell in ‎June as Far East and Indian demand stalled and industry liquidity dried up as the Indian ‎Rupee collapsed. Year on year one carat prices declined 13.7%. Demand in the United ‎States is steady but wholesale buying remains selective as consumer’s trend toward ‎more affordable price points. Rough trading is at a standstill and DTC sightholders are ‎rejecting overpriced De Beers boxes.‎

In June, the RapNet Diamond Index (RAPI) for 1 ct. certified diamonds fell 1.6 percent. ‎The RAPI for 0.3 ct. stones declined by 1.2 percent and the RAPI for 0.5 ct. ‎diamonds ‎dropped 1.4 percent. RAPI for 3 ct. diamonds fell 1 percent during the month.  ‎

During the first half of 2012, RAPI for 1 ct. diamonds fell 3.6 percent with the steepest ‎declines occurring during the latter part of May and through June. RAPI for 0.3 ct. stones ‎dropped 3.7 percent and RAPI for 0.5 ct. diamonds declined by 3.6 percent during the ‎period. RAPI for 3 ct. stones fell 5 percent during the half-year.‎

Copyright © 2012 by Martin Rapaport

According to the just released Rapaport Research Report “Price Pressures,” polished ‎trading has slowed with increasing concern about the global recession. Far East demand ‎is sluggish as wholesale and retail buyers expect further price declines. Indian diamond ‎manufacturers and dealers are under pressure due to high rough prices, the depreciating ‎rupee, high inflation and a declining economy. Liquidity is tight and banks are viewing ‎new proposals with greater caution than before.  ‎

Rapaport estimates suggest that DTC sales fell 19 percent year on year to about $2.83 ‎billion in ‎the first half of 2012 as prices rose about 5 percent and the volume of supply ‎dropped.‎ Sightholders are losing money on their De Beers and ALROSA purchases and ‎are refusing boxes. They will continue to do so until rough prices decline, which they ‎inevitably will in the second half of the year. ‎

The second half of 2012 is expected to be challenging for the diamond industry as Far ‎East demand is projected to remain conservative in the near-term while India’s industry ‎crisis may be more prolonged. Polished prices are coming under increasing pressure as ‎global diamond market sentiment is expected to remain weak. ‎

Additional information about the state of the global diamond market is available in the ‎just-released Rapaport Research Report, “Price Pressures”, which can be found at www.diamonds.net/reports or by emailing: specialreports@diamonds.net. ‎

Rapaport Media Contacts: media@diamonds.net    
International: Alissa Goren +1-718-473-0882<> U.S.: Sherri Hendricks +1-702-893-9400 <> ‎Mumbai: Mittal Kalsy, +1-91-97699-30069

About the Rapaport - RapNet Diamond Index (RAPI): The RAPI is based on the average asking price in ‎hundred $/ct. for the top 25 quality 1 ct. round diamonds (D-H, IF-VS2, RapSpec-2 and better) with GIA ‎grading reports offered for sale on RapNet – Rapaport Diamond Trading Network. The RAPI is provided for ‎various sizes. www.RAPNET.com has daily listings of over 850,000 diamonds valued over US$5 billion and ‎‎7100 members in over 78 countries.

About the Rapaport Group: The Rapaport Group is an international network of companies providing added ‎value services that support the development of free, fair and competitive global diamond markets. ‎Established in 1978, the Rapaport Diamond Report is the primary source of diamond prices and market ‎information. Group activities include publishing, research and marketing services, internet information and ‎diamond trading networks, global rough and polished diamond tenders, diamond certification, quality- ‎control, compliance, shipping, and financial services. Major activities of the group include the development ‎of markets for Fair Trade Diamonds and Jewelry as well as the creation of diamond futures markets. ‎Additional information is available at www.Rapaport.com.‎

Martin Rapaport (Publisher) grants limited permission to use copyrighted data appearing in this press release ‎in and in conjunction with journalistic copy, reporting or articles concerning diamond pricing and information ‎in graph or data presentation format only. The following credit notice must appear alongside, underneath, or in ‎close proximity to any use of the copyrighted data: “Used with permission of Rapaport USA, Inc. Copyright © ‎Martin Rapaport.  All rights reserved.”‎

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